Morning Buzz: India likely to get first $1 trillion market cap firm by 2032, Udaan valuation falls to $1.8 billion and more

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India likely to get first $1 trillion market cap firm by 2032

RIL and HDFC Bank are top contenders for the first $1 trillion crown in the Indian stock market. To get there both firms will have to appreciate annually by 20 percent in the next decade and India achieving a profit to GDP ratio of 7 percent in the listed space. Bajaj Finance would have to maintain a 40 percent growth rate over the next decade to get there. RIL currently has the highest valuation at $213 billion.
(Business Standard)

Udaan valuation falls to $1.8 billion

The latest funding round has seen Udaan’s valuation fall to $1.8 billion from an earlier $3.2 billion in January 2021. Udaan is the second startup after Pharmeasy that has raised money at a significantly lower valuation than the previous round. Among startups only Swiggy has seen an increase in valuations in its recent round.
(Economic Times)

India’s 10 year yield falls to 7.14 percent

India’s 10 year bond yield fell to a low of 7.14 percent due to better than expected inflation numbers and a lower current account deficit. India’s consumer price inflation in December was 5.69 percent versus an expectation of 5.9 percent. Traders expect bond yields to stay in this range but going below 7.10 percent will be difficult as it would be dependent on the US FOMC and RBI policy.  
(Economic Times)

December trade deficit falls; exports up at $38.5 billion

India’s merchandise exports rose to $38.5 billion in December while imports were at $58.25 billion. With this the trade deficit narrowed to $19.8 billion in December from $20.6 billion in November and $23.14 billion in December 2022. It remains to be seen what happens in January-March 2024 as the Red Sea crisis threatens to make shipping more expensive and time consuming.
(Economic Times, Financial Express, Hindu BusinessLine)